Explore BrainMass

Explore BrainMass

    Fixed Costs of Production and Inelastic Agriculture

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What relationship, if any, can you detect between the fact that the farmer's fixed costs of production are large, and the fact that the supply of most agricultural products is generally inelastic? Be specific in your answer.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:08 pm ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/fixed-costs-production-inelastic-agriculture-31285

    Solution Preview

    Because fixed costs are a significant portion of total costs, average variable ...

    Solution Summary

    The expert determines whether you can detect between the fact that the farmer's fixed costs of production are large, and the fact that the supply of most agricultural products is generally inelastic.

    $2.49

    ADVERTISEMENT